Thursday, Oct 16, 2008

Gold is gold, paper is paper, and "Comex gold" is nothing but paper masquerading as gold

321gold via SOTT: Why Gold Is Dropping When It Shouldn't? - and what it all means

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, "because Comex-gold isn't gold" - and because it deceptively pretends to be 'the' price-setter for real gold.
Gold is gold, paper is paper, and "Comex gold" is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.
HOW ABOUT PAPER MASQUERADING AS HOUSES?
The Limits of Financial Power
The financial elites can twist and squirm all they want, but nothing they are able to do within their own limited powers will work. All they can do is shut down markets, shut down banks, or create more debt. Period.

Posted by malct @ 09:04 PM (801 views) Add Comment

17 Comments

1. Renting2 said...

"Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn't for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won't have food on their shelves, there won't be gas a the gas station, and your bank will be shut. Cash doesn't transfer very well without the bank settlement process.

That's the problem."

That's the bit I don't like! Where do I get me best bitter from?

Thursday, October 16, 2008 09:27PM Report Comment
 

2. renting2 said...

"Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn't for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won't have food on their shelves, there won't be gas a the gas station, and your bank will be shut. Cash doesn't transfer very well without the bank settlement process.

That's the problem."

That's the bit I don't like! Where do I get me best bitter?

Thursday, October 16, 2008 09:29PM Report Comment
 

3. stillthinking said...

Gold is demonstrating it's limitation as money, i.e. it lacks 'energy'. During a recession demand for gold drops and its value drops. However, if you still want to keep a roof over your head your desire for money to repay your debts stays the same.

Thursday, October 16, 2008 09:33PM Report Comment
 

4. malct said...

where oh where is the night shift?

come on you lot if you give up now they've got us by the short and curlies

OK - I know, they said it would be painful

male or female

just ocurred to me as the father of three daighters and grandfather of two granddaughters

this site must be pretty intimadating to the people who really matter

Thursday, October 16, 2008 09:43PM Report Comment
 

5. renting2 said...

A gentle wind just blew some dusty tumbleweed through the corridors of hpc.co.uk!

Thursday, October 16, 2008 09:50PM Report Comment
 

6. jonb said...

It is also falling because the main buyers, the Indian jewellery market, are on a buyers strike because it is too expensive. Also, gold jewellery is a luxury item that people cut back on when they are short of money.

Thursday, October 16, 2008 09:54PM Report Comment
 

7. plato said...

He Knows :

'Our economy has become too centralized. Everything has to travel over long distances, so face-to-face cash transactions will not be able to keep the system alive. There is much to be said for localized, decentralized distribution systems, which in essence involve many different and varied local economies rather than one large and uniform one. For arms-length cash transactions to be able to sustain an economy, economic activity needs to be localized, i.e., decentralized,'

Thursday, October 16, 2008 09:55PM Report Comment
 

8. plato said...

Don't really know anything about gold except it is non-corrosive and non reactive - will last forever. It's extremely maleable. It is very,very rare and artistically appreciated. It's heavy weight means if you try and carry too much you will probably collapse under the weight of your own greed. Sounds like The ideal standard to me.

Goodnight !

Thursday, October 16, 2008 10:19PM Report Comment
 

9. quiet guy said...

Not relevant to topic but this bit caught my eye:

"It won't even matter whom you vote for, as long as you vote the incumbents out. Then, rinse and repeat, from now on until you die. It's the only power you have left."

I've been losing interest in voting lately. I was glad to see the back of the tories. I'll be glad to see the back of Nulabour. what now? Just vote against whoever is in power. Every time.

(Yes, I know. Malct, S2R1 and P4C will call me a mug for bothering to vote.)

Thursday, October 16, 2008 10:20PM Report Comment
 

10. enuii said...

Malct, once sold a car to a woman who was a holiday rep in the early days of Spanish tourism, she asked if I would take payment in gold kruggerands. I later found out that she used to convert the money she made overseas into the lovely little coins before she flew home with them inside her furry purse tax free. I kept them for quite a while but the price of gold never did much while I had them and I have been quite uninspired by the stuff ever since.

Quiet guy, I concur, the worst thing we do in this country is vote governments in for a repeat stint, we should never vote the same bunch in twice for damage limitation purposes.

Thursday, October 16, 2008 10:28PM Report Comment
 

11. shipbuilder said...

This article sounds strangely like housing VIs bleating on about 'sound fundamentals' and the rest of the reasons why houses could never go down when 'anyone in their sane mind would expect them to rise.'

Thursday, October 16, 2008 10:29PM Report Comment
 

12. nooneo said...

Personally I thinks we is in an awfully uncertain time. If money is looking dodge, gold aint no good, whats ya need is tings.

Thursday, October 16, 2008 10:30PM Report Comment
 

13. enuii said...

Oh, I forgot to add that thats probably what the metal detectors are really for at the airport, not to prevent terrorism but to stop people smuggling gold home in their undies.

Thursday, October 16, 2008 10:30PM Report Comment
 

14. planning4acrash said...

Quiet Guy. I intent to vote for and possibly look at running for (at some point) with UKIP, because the EU is one of the greatest threats of tyranny & waste, and, because UKIP don't support the nonsense on global warming. They are the closest we have to a moderate small government party. So, I'm with them at present. I say, definitely vote, but only for a third party, and definitely not for the Greens, until they take up real environmental issues and move away from fake global warming, cooling, or whichever the wind decides to blow.

Thursday, October 16, 2008 11:15PM Report Comment
 

15. Greenmind said...

Global warmings not fake

Thursday, October 16, 2008 11:39PM Report Comment
 

16. Maihem said...

A British sovereign has a face value of £100 sterling doesn't it? Does it get import duty as sterling at £100 or gold at £450?

Also, is there any situation where you can insist on payment in denominations of £100 coins :o) and get 4.5x what you are owed?

Thursday, October 16, 2008 11:43PM Report Comment
 

17. str 2007 said...

Sorry guys, I decided to have a night off, typical, the last thing I was doing was reading Bullion Vault web site so this post was quite relevant.

Interesting that they're expecting the price of Gold to fall, I'd commented earlier that all of a sudden it seemed to start doing the opposite of what yoo'd expect.

Whether the 'Comex' gold they talk of will seperate from the real stuff or the Comex rate will pull down the rate rate of the real stuff remains to be seen.

What does seem to be the case though is that nothing is safe from speculation and things move quickly. Gold for example fell 5% in 3 minutes yesterday. Makes houses look positively reliable !

Friday, October 17, 2008 09:19AM Report Comment
 

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